South Korea graphite electrode market is segmented by: grade (regular power RP, high power HP, and ultra high power UHP), diameter (small up to 400 mm, medium 450-550 mm, and large 600 mm and above), raw material route (needle coke-based and petroleum coke-based), and application (EAF scrap-based steel, ladle furnace and refining in blast furnace mills, silicon, ferroalloy and other submerged-arc furnaces, and other specialty non-steel).

The South Korea graphite electrode market is estimated at USD 124 million in 2026 (USD 119 million in 2025) and is projected to reach USD 178 million by 2036, registering a compound annual growth rate of approximately 3.7%. South Korea is one of the world’s six largest steel producers, turning out around 5 million tonnes of crude steel a month, and its electric arc furnace sector supplies rebar, sections and special steels while the two blast furnace groups dominate flat products. What sets the market apart is its supply position: every graphite electrode used by Korean mills is imported, at more than 30,000 tonnes a year according to POSCO Holdings and an estimated 39,200 tonnes in 2025, mainly from China, Japan and India.
That dependence is now being tested from both directions. On the demand side, POSCO completed Korea’s largest electric arc furnace at Gwangyang in June 2026, a 2.5 million tonne unit built for about KRW 600 billion, and Hyundai Steel has broken ground on a USD 5.8 billion EAF mill in Louisiana. On the supply side, POSCO Future M has developed manufacturing technology for 300 mm UHP electrodes under a national project, the first step towards a domestic source for a material that Korean steelmakers have always bought abroad.
For suppliers, this is a mature, quality-driven buyer base with technically demanding furnaces, a clear decarbonisation agenda and a growing wish for supply security. For Korean steel groups, it is a choice between deepening relationships with overseas producers and backing a domestic alternative. This report examines South Korea graphite electrode consumption, imports and supplier dynamics to 2036.
South Korea graphite electrode market: 2025 data

South Korea Graphite Electrode Market Growth Drivers
Gwangyang EAF start-up. POSCO’s new furnace is fed with scrap through a continuous charging system and is aimed at premium products such as automotive sheet and electrical steel by 2030. Indicatively, 2.5 million tonnes of EAF output at 1.5–2 kg per tonne equals about 4,000–5,000 tonnes of electrodes a year, more than 10% on top of today’s import base.
Decarbonisation of steelmaking. POSCO says scrap-based EAF steel can cut emissions by up to 75% against its blast furnace average, and Hyundai Steel is developing hot metal mixing in electric furnaces. Hydrogen-based ironmaking and electric smelting are longer-dated, but they point to a decade in which Korean mills melt more steel electrically.
Data centre and infrastructure steel. Korea’s steel exports returned to growth in June 2026 for the first time in 14 months. Shipments to the US rose 58% in the first half to 2.2 million tonnes, and rebar exports for data centre construction climbed to about 483,500 tonnes from just 14,560 tonnes a year earlier. Rebar is an EAF product, so each tonne shipped is electrode demand at home.
Premium electric steel. Hyundai Steel and Dongkuk Steel run large electric furnaces, including Dongkuk’s 1.2 million tonne eco-arc unit at Incheon, and are moving into higher-grade long and special steels that require tighter melting control and consistent electrode quality.
Overseas EAF investments by Korean groups. Hyundai Steel’s Louisiana mill, with 2.7 million tonnes of planned capacity from 2029 and a 20% stake held by POSCO, extends Korean steelmaking practice to the US and builds supplier relationships that could shape procurement for years.
Localisation policy. Government-backed research on large-diameter artificial graphite electrodes reflects a policy goal to reduce reliance on three supplier countries, creating possible future demand for domestic material and for needle coke and technology partnerships.
Policy, Trade and Cost Factors Shaping the South Korea Graphite Electrode Industry
Total import dependence. With no commercial domestic production, Korean mills are exposed to every price increase, export control and shipping disruption affecting Chinese, Japanese and Indian suppliers. In 2017, a shortage of Chinese electrodes threatened operations at small and medium-sized electric furnace mills, a memory that still shapes procurement.
Needle coke competition. POSCO Future M, Korea’s only graphite anode producer, makes synthetic graphite at Pohang from coke derived from POSCO’s own coal tar and has won large long-term anode supply orders. Needle coke and similar feedstock are scarce, and any electrode project must compete with battery anode demand for the same carbon.
Trade protection abroad. US steel tariffs of 50% have pushed Korean groups to localise production in America, and the EU’s new import regime reserves a share of quota for FTA partners, a category that includes Korea. Both changes affect where Korean steel is made and therefore where electrodes are consumed.
Rebar overcapacity. Domestic rebar capacity is about 12.3 million tonnes against consumption of roughly 7 million tonnes, according to industry reporting, and Hyundai Steel has closed part of its Incheon rebar capacity and an EAF. Weak construction demand at home keeps furnace utilisation under pressure and limits electrode growth outside exports.
Power and scrap costs. Electricity tariffs and scrap prices determine EAF margins, and mills adjust furnace runs when spreads narrow, so electrode demand responds to energy policy as well as to steel prices.
Key South Korea Graphite Electrode Market Trends and Insights
Localisation moves from laboratory to commercial question
POSCO Future M took nearly five years to develop its 300 mm electrode technology and says it will review commercialisation as market conditions allow. The key issues are whether it can scale to the 600 mm-plus UHP sizes used in large EAFs, secure needle coke and match imported quality. Until then, imports carry the market.
Supply security now sits alongside price
Korean buyers are widening supplier panels across China, Japan and India and moving towards longer supply agreements. Japanese suppliers are valued for consistency, Indian suppliers for large-diameter capacity and Chinese suppliers for price and volume.
Large furnaces are changing the specification
A 2.5 million tonne EAF uses larger-diameter, higher-power electrodes than the mills it joins, and Korean buyers are moving towards UHP grades with strict dimensional and joint-quality requirements.
Steel groups are integrating backwards
POSCO’s steel, graphite and battery materials businesses are drawing on one another’s raw materials, which is unusual among electrode buyers and could lead to a captive supply model if commercialisation succeeds.
Export steel is steering furnace use
The US data centre boom has given electric furnace mills a profitable export outlet for rebar, but it depends on tariff policy and project timing. Electrode purchasing needs to allow for sharp swings in furnace operating rates.
South Korea Graphite Electrode Market Segment-wise Analysis
By Grade and Diameter
UHP electrodes of 450 mm to 700 mm are used in the largest furnaces at POSCO and Hyundai Steel, while HP and smaller UHP sizes serve mid-size mills and ladle furnaces. The domestic development project is for diameters of 300 mm and above, so the first locally made products are likely to serve smaller furnaces and refining stations before they reach the biggest EAFs.
By Application
Scrap-based EAF melting for rebar, sections and bar is the volume base. Premium flat steel from the new Gwangyang furnace adds demand with a higher quality requirement, hot metal-charged melting is an emerging use, and ladle furnaces in integrated mills provide a steady stream tied to blast furnace output.
By Sales Channel and Origin
Large groups buy directly under annual or multi-year contracts, while smaller mills buy through trading houses. Origin matters for quality approval, freight and trade exposure, and imports from Japan, India and China are weighed against one another on each tender.
By Region
Demand is concentrated at the large steelworks in Gwangyang in the south-west and Pohang on the east coast, Dangjin on the west coast and the Incheon and Gyeonggi capital area. Smaller EAF mills operate in the south-east around Busan and Ulsan.
South Korea Graphite Electrode Market Competitive Landscape
The market is shared between overseas suppliers, with a new domestic entrant waiting in the wings. Japanese producers compete in premium UHP, Indian producers HEG and Graphite India supply large-diameter electrodes with strong export capability, and Chinese producers compete on price and volume. Trading houses and distributors play a major role for smaller mills.
On the buyer side, POSCO, Hyundai Steel and Dongkuk Steel set specifications and purchasing patterns. POSCO is unusual because its affiliate has developed electrode technology, giving it an option to move from buyer to partner, which gives it leverage in negotiations with overseas suppliers.
Over the forecast period, market share is likely to favour suppliers that can guarantee supply through trade disruptions, document quality and offer technical service on large furnaces. If POSCO Future M reaches commercial scale, the competitive picture could change materially in the 2030s.
South Korea Graphite Electrode Market Segmentation
Consumption, imports and production from 2026 to 2036 are segmented as follows.
By Grade
•    Regular power (RP)
•    High power (HP)
•    Super high power (SHP)
•    Ultra high power (UHP)
By Diameter
•    Small (up to ~400 mm)
•    Medium (~450–550 mm)
•    Large (600 mm and above)
By Component
•    Electrodes
•    Nipples and pins
By Origin
•    Imports from China
•    Imports from Japan
•    Imports from India
•    Imports from other countries
•    Domestic production
By Application
•    EAF scrap-based carbon steel
•    EAF hot metal or DRI-assisted melting
•    EAF alloy, special and stainless steel
•    Ladle furnace and refining in integrated mills
•    Others (specialty, non-steel)
By Buyer
•    Integrated steelmakers’ EAF and ladle furnace units
•    Independent EAF and rebar mills
•    Special and stainless steel makers
•    Traders and distributors
By Sales Channel
•    Direct long-term contracts
•    Trading houses and distributors
•    Spot purchases
By Region
•    Capital region (Incheon and Gyeonggi)
•    Chungcheong
•    Gyeongbuk
•    Jeolla
•    Gyeongnam, Busan and Ulsan
Key South Korea Graphite Electrode Suppliers and Steel Buyers Covered
International suppliers, domestic developers and leading Korean steelmakers shaping demand and pricing include, but are not limited to:
•    Resonac Holdings
•    Tokai Carbon
•    HEG Limited
•    Graphite India Limited
•    Fangda Carbon New Material (China)
•    POSCO Future M
•    POSCO Holdings
•    Hyundai Steel
•    Dongkuk Steel
•    Other graphite electrode producers, needle coke suppliers, trading houses and distributors serving South Korea